Gold Fueled by fear not for buying volumes

10월 14일

Today, gold is showing strong upward momentum, fueled by multiple factors. Geopolitical tensions, particularly in the Middle East, have increased gold's appeal as a safe-haven asset. The ongoing conflict between Israel and Hamas has escalated, pushing investors toward gold, which is seen as a stable store of value during times of uncertainty. In addition, central banks, especially in China and the Eurozone, are adopting more dovish monetary policies, which further support gold prices by keeping interest rates low and driving demand from investors looking for alternatives to low-yield assets.

Technically, gold has broken significant resistance levels. Prices are currently hovering around $2,685 and are expected to test the $2,700 mark soon. Analysts suggest that if gold sustains its price above $2,685, it could rally to $2,735 in the coming days. However, a pullback to around $2,625–$2,650 is possible if short-term exhaustion sets in, offering potential buying opportunities.

From a supply perspective, production challenges in major gold-producing countries like the U.S. and Australia are adding to bullish sentiment. With declining output and limited exploration activities, the long-term outlook remains favorable for gold prices​.

In the near term, traders should monitor geopolitical developments and central bank policies closely, as these are the key drivers influencing gold's trajectory.